JAKKS Pacific battled a challenging retail environment to buck the trend with a 4% net sales increase to $321.6 million in the third quarter.
Net sales of Toys/Consumer Products hit $264.3 million, a 7% year-over-year increase compared to Q3 last year.
We’re pleased to share the results of a very strong third quarter. For many years, our largest shipping quarter has been the third driven by our focus on the FOB selling model. This year is no exception, with the U.S. business having its biggest shipping quarter in ten years. The yearly plan is on track to reach its goals in the quarter … We are encouraged by some of the early consumer reactions to our new fall 2024 products. We are now confident about finishing out this year as planned while building on retail momentum to deliver a robust 2025.”
JAKKS says that each of its divisions within the Toys/Consumer Products business segment grew in Q3, including a 5.5% gain in Dolls, Role Play/Dress-up, a 5.4% uptick in Action Play & Collectibles, and a whopping 42.7% spike in Outdoor/Seasonal Toys.
Meanwhile, Disguise, the costumes and seasonal division of JAKKS Pacific, saw net sales dip to $57.3 million, a 10% decline over last year.
“Our Costumes business, as anticipated, reflected softness due to customers recalibrating to lower Halloween consumer demand for costumes versus prior year,” Berman adds.
For the first nine months of 2024, net sales fell 4% while Toys/Consumer Products net sales slipped 2%.
Looking deeper into the numbers, JAKKS’ gross profit was $108.8 million, up 2% compared to $107 million in Q3 2023. Year-to-date gross profit of $177.5 million reflects a 6% decline compared to $189.6 million in the comparable period last year.
